40% of LinkedIn’s Revenue
< Previous post
Next post >
LinkedIn’s ad revenue in the first three months of 2015 were a solid $119 million, a 38% increase over the same period in 2014. But the outlook for the next quarter is looking weaker, and the site now focuses more on specific content marketing.
This first quarter marked the first time that traditional ads comprised of less than half of the total ad revenue, while LinkedIn’s “Sponsored Updates” comprised of over 40%, twice the share of the past year. According to Steve Sordello, chief financial officer, the site’s content marketing is set to continue to grow at a “healthy rate”.
Advertisement is a fairly small portion of LinkedIn’s total revenue, a mere 19% of $638 million in the first quarter of 2015, while their main source of revenue continued to be employee recruitment and job searches, comprising of 60% of the total revenue. LinkedIn saw a net loss of $43 million in the first quarter, and a net income of $73 million when excluding amortisation and stock-based compensation, an increase from 2014’s $47 million.